Business

Rolls-Royce lands $2.2bn contract with Emirates Airline

Rolls-Royce wins a long term, multi-billion dollar servicing contract for Emirates Airline engines.

Ivan Gale

February 14, 2011

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Rolls-Royce, the global power systems maker, has sealed a US$2.2 billion engine servicing contract with Emirates Airline, its second deal in three months with the Dubai carrier.

The work will cover Rolls-Royce engines on Emirates' entire fleet of 70 Airbus A350 aircraft due for delivery later this decade, and comes as manufacturers increasingly look to after-market sales and maintenance support to increase revenues.

It will also provide a boost to the English firm after its civil aerospace division reported a 20 per cent fall in profits for last year, in part due to last November's Trent 900 engine failure on a Qantas Airways Airbus A380.

Emirates announced it has signed a long term contract valued covering Trent engines for the 70 Airbus A350 aircraft.

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This contract brings the airline's entire Rolls-Royce powered fleet of 128 aircraft under TotalCare® arrangements, Emirates said.

The "contract with Rolls-Royce is an important step in ensuring our A350 XWB engine's life cycle cost is managed effectively," said

Tim Clark, the president of Emirates.

Rolls-Royce said its long-term service agreements help minimise customer financial risk and enhance operational performance and reliability, allowing operators to concentrate on their core business.

The new contract announce today for A350 engines comes months after Rolls-Royce won a $1.2bn contract with Emirates, for Trent 700 engines powering 27 Airbus A330s and Trent 800 engines powering 21 Boeing 777s.

igale@thenational.ae

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THE SPECS

      

 

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How to get exposure to gold

Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.

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The Details

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Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
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World Mental Health Day
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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